Fee raised by 3.2 percent

Author: Brian Fung

In the smallest increase in nearly four decades, Middlebury College has raised its comprehensive fee by 3.2 percent - to $50,780 for the 2009-2010 academic year. Up by $1,570 from $49,210, the fee includes tuition, room and board, and the annual $380 charge for student activities.

While the move may signal relief for struggling parents, it indicates only more budget challenges down the road. The College's decision comes after weeks of deliberation, as well as efforts by Old Chapel to estimate the projected performance of the College endowment. Having plunged by more than $300 million in the past 21 months, the endowment may still have room to fall - perhaps ending fiscal year 2009 with a negative return of up to 30 percent, according to administrators.

At a time when wealthier schools are suffering more given the degree to which they rely upon the endowment to defray costs, Middlebury's general finances have in fact performed above expectations this fiscal year. In pursuing budget cuts that are likely to last beyond 2010 and into 2011, the College hopes to free up additional revenue - saving roughly $11 million - just before facing what President of the College Ronald D. Liebowitz described as "the biggest challenge": weathering the delayed impact of the endowment's current poor performance.

"We're going to be budget-cutting for the next year, year and a half," said Liebowitz, in reference to fiscal years 2010 and 2011.

When cost reduction measures were announced at the end of January, many students deplored the anticipated closing of Atwater Dining Hall for regular meals and the loss of the MiddView outdoor orientation program. In the interests of protecting similar services, the Student Comprehensive Fee Committee recommended a fee hike of no less than 3.6 percent to keep pace with inflation in higher education.

"It was a surprise to me to hear that the fee had gone up by 3.2 percent, actually," said Caroline Woodworth '09, chair of the committee, "because it was really below the lower boundary we were considering in order to continue making Middlebury programs sustainable for the future."

Adding to the price of college by only $1,570 means Middlebury will need to find revenue elsewhere. Firmly committed to preserving need-blind admissions and avoiding layoffs, the College is unlikely to relieve the pressure by touching those.

With both charitable donations and the endowment at a dramatic low, the only lever realistically available to the College is to further trim the budget. While Liebowitz admitted that in the future it will not be possible to "offer the same services as before [the budget crisis]," the College would do its best to limit the impact on the student experience.

"It doesn't mean things are going to be worse," said Liebowitz. "It means we're going to be smarter and we're going to eliminate what inefficiencies and redundancies we can."

Middlebury's relative good fortune thus far stands in stark contrast to that of its peers, such as Williams and Amherst Colleges, who in order to make up revenue lost in their larger endowments are raising their comprehensive fees by historical rates - 4.9 percent and 4.5 percent, respectively. Meanwhile, other U.S. schools are following Middlebury's lead. Hamilton College declared its fee would rise only three percent, while Princeton University's will increase by just 2.9 percent.

Student Government Association President Hiba Fakhoury '09 commended Liebowitz for striking a compromise with students.

"We don't have much of a choice," said Fakhoury, addressing financially troubled families. "Raising the fee only a little bit is optimal."

For those stunned by the psychological barrier posed by a $50,000-plus comprehensive fee, Woodworth explained that achieving a balance between costs and services is a struggle that plagues most institutions even during periods of economic prosperity.

"$50,000 is a very alarming price tag," she said. "However, for Middlebury to run as we expect it to, that's the cost of our education. And if we're not happy with that, either our expectations need to change, or we need to change our price tag. And that's not unique to Middlebury."